Piyush Goyal Meets Microsoft India Chief to Expand Data Centres and Boost India AI Mission

Commerce Minister Piyush Goyal met Microsoft India chief Puneet Chandok to discuss data centre expansion, AI infrastructure, technology investments and efforts to strengthen India’s position in global artificial intelligence.

Piyush Goyal Discusses AI Infrastructure With Microsoft

Union Commerce and Industry Minister Piyush Goyal held discussions with Microsoft India and South Asia President Puneet Chandok on expanding the company’s data centre infrastructure and supporting the India AI Mission.

The meeting focused on strengthening India’s artificial intelligence ecosystem by improving cloud capacity, computing infrastructure and technology investments. The government is seeking greater participation from global technology companies as India develops its capabilities in AI.

Goyal’s office said India is increasingly becoming an attractive destination for international technology investment. The discussions also explored ways to expand data centre capacity and advance the India AI Mission, with the broader objective of positioning India as a trusted global AI partner.

Microsoft Steps Up Cloud and AI Investments in India

$17.5 Billion Investment Plan

Microsoft has been increasing its focus on India’s cloud and artificial intelligence infrastructure. In December 2025, the technology company announced plans to invest USD 17.5 billion in India between 2026 and 2029.

The investment is aimed at supporting cloud and AI infrastructure, workforce development, skilling programmes and Microsoft’s broader operations in the country.

This commitment comes on top of an earlier USD 3 billion investment announced by Microsoft, highlighting the company’s growing focus on India as a major technology and AI market.

Expansion of Data Centre Network

Microsoft is also expanding its data centre presence across India to meet rising demand for cloud computing and AI services.

In August 2026, the company announced the general availability of its India South Central cloud region in Hyderabad. With this addition, Microsoft’s operational cloud regions in India have increased to four.

The expansion is expected to strengthen local cloud capabilities and provide businesses and developers with greater access to computing resources needed for AI and other advanced digital applications.

IndiaAI Mission Targets Stronger Computing Capacity

The meeting between Goyal and Microsoft comes as the Indian government continues to build domestic AI infrastructure through the IndiaAI Mission.

Approved in March 2024, the initiative has an overall financial outlay of Rs 10,371.92 crore over five years. Its objectives include developing computing infrastructure, supporting indigenous AI models, creating datasets, encouraging startups and expanding AI-related skills.

More GPUs Added to National AI Infrastructure

A key component of the mission is improving access to high-performance computing resources.

More than 38,000 graphics processing units (GPUs) have been onboarded under the mission’s common compute facility. These resources are intended to support startups, researchers and academic institutions working on AI applications and models.

The government has also announced plans to add another 20,000 GPUs, which would further increase India’s national AI computing capacity.

Greater availability of GPUs is expected to help Indian companies and researchers develop and train AI models while reducing infrastructure constraints.

Focus on Making India a Global AI Hub

The government’s discussions with major technology companies reflect its broader ambition to establish India as an important global centre for artificial intelligence.

Expanding data centres, cloud infrastructure and access to advanced computing power will be important as demand for AI applications grows. Partnerships with global technology firms could also support investment, skills development and innovation across India’s digital economy.

The combination of private-sector investment and government-backed initiatives such as the IndiaAI Mission could help create a stronger ecosystem for AI startups, researchers and enterprises.

Piyush Goyal Holds Talks With Uruguay Foreign Minister

Apart from his meeting with Microsoft, Piyush Goyal also met Uruguay’s Foreign Minister Mario Lubetkin to discuss economic relations between India and Uruguay.

The discussions focused on strengthening bilateral trade and investment, building on economic complementarities and advancing cooperation between India and the South American country.

Goyal also discussed taking forward India’s partnership with MERCOSUR, the South American regional trade bloc.

India-MERCOSUR Trade Partnership

India already has a Preferential Trade Agreement with MERCOSUR, providing a framework for trade between the two sides.

India and Uruguay are exploring opportunities to deepen economic engagement, while cooperation with MERCOSUR could provide additional avenues for expanding trade and investment between India and South American markets.

The talks underline India’s efforts to strengthen international economic partnerships alongside its push to attract global technology investments.

Conclusion

Piyush Goyal’s discussions with Microsoft highlight India’s growing focus on data centres, cloud infrastructure and artificial intelligence. With Microsoft expanding investments and the IndiaAI Mission increasing computing capacity, the country is working to build a stronger and globally competitive AI ecosystem.